You Can Realize the Same Value as That Derived from Stock

question 44

Multiple Choice

You can realize the same value as that derived from stock ownership if you:

• A) sell a put option and invest at the risk-free rate of return.
• B) buy a call option and write a put option on a stock and also borrow funds at the risk-free rate.
• C) sell a put and buy a call on a stock as well as invest at the risk-free rate of return.
• D) lend out funds at the risk-free rate of return and sell a put option on the stock.

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Definitions:

Partial

Relating to or being part of something but not whole; incomplete or limited in extent.

Sporadic Schedule

Refers to a random or unpredictable pattern of occurrences or events, often in the context of rewarding or reinforcing behaviors.

Schedule of Reinforcement

The plan for timing and frequency of reinforcement given to subjects in a conditioning experiment to establish or modify behavior.

Variable Ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, promoting high and steady response rates.